THE first step in Jaguar's global fightback will be made today with the unveiling in Detroit of its new XK Sportscar prototype.

The car, which is expected to go into production at Castle Bromwich in the Midlands next year, will spearhead the firm's road to recovery - safeguarding jobs in Birmingham and Merseyside.

It will be the first positive sign after months of adverse publicity for the troubled carmaker, starting last September with the announcement that car manufacturing will end in Coventry later this year and culminating last week with the firm seeking a multi-million pound cash injection from parent company Ford to cover asset depreciation.

Speaking in Detroit last night, Jaguar MD Bibiana Boerio said it was critical for Jaguar to get off the front pages for the wrong reasons. The XK prototype will be the first completely new model to come from the pen of design guru Ian Callum who heads the Whitley research and design studio in Coventry.

Callum, who previously designed the Aston Martin Vanguish and DB9, moved to Jaguar in 2000 after the death of designer Jeff Lawson.

Ms Boerio said the centre, which employs 2,000 designers and engineers, would play the leading role in shaping Jaguar's recovery.

Last year, Jaguar sold 120,000 units worldwide, a long way short of the 200,000 they predicted when the Halewood X type was first announced.

Nevertheless, Jaguar did sell a record 32,700 units in the UK last year. X-type sales were up by 20%, driven by the successful launch of diesel and estate versions. Diesel power also saw S type sales rise by 10%.

The picture was the same across Europe. Sales were up by 25% overall. Italy saw a 17% rise, France 15% and Spain a whopping 65%. Only in Germany did sales drop, by 7%.

In the US, Ms Boerio said Jaguar had to rechannel its efforts away from fleet business to retail sales. "The market here has seen a large swing away from premium cars to premium off-roaders. The introduction of a long wheelbase XJ has given us an advantage. But the exchange rate hasn't helped so it will take some time to get back to where we belong," said Ms Boerio.